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Can you summarize NVRS 104A.4404?
Uniform Commercial CodeAdditional Articles > Obligation of beneficiarys bank to pay and give notice to beneficiary.
Short Summary
This legal document, governed by the Nevada Revised Statutes, specifically addresses the obligation of a beneficiary’s bank to pay and provide notice to the beneficiary. According to the document, if a beneficiary’s bank accepts a payment order, it is obligated to pay the amount of the order to the beneficiary on the payment date. However, if acceptance occurs after the close of the bank’s funds-transfer business day, payment is due on the next funds-transfer business day. The document also outlines the rights of the beneficiary in case the bank refuses to pay after demand and notice of consequential damages. The beneficiary may recover damages resulting from the refusal to pay, unless the bank proves a reasonable doubt concerning the right of the beneficiary to payment. Additionally, the document specifies the bank’s obligation to notify the beneficiary of receipt of the payment order, either before midnight of the next funds-transfer business day or as required by the order. Failure to provide the required notice may result in the bank being obliged to pay interest to the beneficiary. The document further clarifies that the right of the beneficiary to receive payment and damages cannot be varied by agreement or funds-transfer system rule, while the right to be notified may be varied by agreement or rule if the beneficiary is notified beforehand.
Whom does it apply to?
Beneficiary's bank
What does it govern?
Obligation of beneficiarys bank to pay and give notice to beneficiary
What are exemptions?
Exemptions are provided in subsection 5 of NRS 104A.4211 and subsections 4 and 5 of NRS 104A.4405.
What are the Penalties?
Damages may be recovered by the beneficiary if the bank refuses to pay after demand and notice of consequential damages, unless the bank proves a reasonable doubt concerning the right of the beneficiary to payment.
Jurisdiction
Nevada